Zomato, the Indian food delivery company, saw a 5% increase in its stock price on Monday after issuing a clarification on the recent shutdown of several Blinkit stores in Kolkata. The company had faced criticism for abruptly closing down the stores, which led to protests by the delivery partners who worked there.
Zomato Clarifies on Blinkit Unavailability
In a statement, Zomato clarified that it had changed the payout structure for its delivery partners to better address their needs. As a result, the company had to close down some of the Blinkit stores, which were not financially viable under the new structure. Zomato stated that it was working on alternative employment opportunities for the affected delivery partners.
The company also noted that it had received complaints from some delivery partners about the old payout structure, which they claimed was unfair. Zomato said that it had taken these complaints seriously and had introduced a new payout structure to address these concerns.
Blinkit Stores Reopen After Wage Protests
Following the clarification by Zomato, several Blinkit stores in Kolkata reopened on Monday. The delivery partners who had protested against the store shutdowns welcomed the move and expressed relief at being able to resume work. Some of them said that they had been out of work for several days and had faced financial difficulties as a result.
Zomato Stock Rises
Zomato's stock price rose by 5% in response to the company's clarification on the Blinkit store shutdowns. The stock had fallen by over 6% last week following the controversy, which had raised concerns about the company's treatment of its delivery partners.
Changed Payout Structure to Address the Needs of Delivery Partners
Zomato introduced a new payout structure for its delivery partners earlier this month, which was aimed at addressing some of the issues that they had raised. Under the new structure, delivery partners would receive a higher payout for longer-distance deliveries and for deliveries made during peak hours.
The company had stated that the new payout structure was part of its ongoing efforts to improve the earnings and working conditions of its delivery partners. Zomato has faced criticism in the past for its treatment of delivery partners, who have complained about low earnings, long working hours, and poor working conditions.
